The Building Societys’ Association (BSA) has attacked the Financial Ombudsman Service (FOS) for failing to consult with the industry and consider the cost of its actions to financial service institutions.
In a speech made at the BSA’s annual lunch, chairman Martin Ritchley suggested that it should be mandatory the FOS responds to criticism by the industry and an appeals procedure should be put in place so that petitions can be made against its decisions.
Ritchley said: ‘It is undeniable some of its decisions can have huge impacts upon the administrative costs and pricing policies of financial institutions. Yet unlike the FSA, there is no requirement imposed upon the FOS to consult or to respond to any consultations.
Iris Baker, spokesperson for the FOS, said: ‘We do not feel it is appropriate to comment at this time. This is not a subject we want to discuss.’